Unless stated otherwise, all amounts are in € million.
Summary of the accounting policies
These separate financial statements have been prepared in accordance with Title 9, Book 2 of the Dutch Civil Code. The accounting policies used are the same as those used in the consolidated EU-IFRS financial statements, in accordance with the provisions of article 362-8 of Book 2 of the Dutch Civil Code.
In these separate financial statements, investments in subsidiaries are accounted for using the net asset value, with separate presentation of the goodwill component under intangible fixed assets. Results on transactions involving the transfer of assets and liabilities between the Company and its participating interests and mutually between participating interests themselves, are eliminated to the extent that they can be considered as not realized. For an appropriate interpretation of these statutory financial statements, the separate financial statements should be read in conjunction with the consolidated financial statements.
Participating interests with a negative net asset value are valued at nil. This measurement also covers any receivables provided to the participating interests that are, in substance, an extension of the net investment. In particular, this relates to loans for which settlement is neither planned nor likely to occur in the foreseeable future. A share in the profits of the participating interest in subsequent years will only be recognised if and to the extent that the cumulative unrecognised share of loss has been absorbed. If the Company fully or partially guarantees the debts of the relevant participating interest, or if has the constructive obligation to enable the participating interest to pay its debts (for its share therein), then a provision is recognised accordingly to the amount of the estimated payments by the Company on behalf of the participating interest.
Information on the use of financial instruments and on related risks for the group is provided in Note 23 of the consolidated financial statements. The Company makes use of the option to eliminate intragroup expected credit losses against the book value of loans and receivables from the Company to participating interests, instead of elimination against the equity value / net asset value of the participating interests.
Other income consists mainly of the charge out of the parent company related corporate overhead and services to the group companies, which is fully realized in the Netherlands.
Statutory and fiscal seat
The statutory seat of Koninklijke DSM N.V. is Het Overloon 1, Heerlen (Netherlands). A list of Koninklijke DSM N.V.’s participations has been filed with the Chamber of Commerce (Netherlands) and is available from the company upon request, as well as on the company website. DSM is registered in the Dutch Commercial Register under number 14022069.
The company forms a fiscal unity for corporate income tax and VAT purposes together with the group companies in the Netherlands. Each of the companies recognizes the portion of corporate income tax that the relevant company would owe as an independent tax payer, taking into account the tax liabilities applicable to the company.
Finalization PPA Erber
In the reporting year, the Purchase Price Allocation (PPA) related to the Erber acquisition in 2020 was finalized, resulting in a decrease of the goodwill amount by -€46 million, representing 90% of the total goodwill adjustment of -€51 million, an increase of share in subsidiaries by €40 million and a decrease of other current liabilities of -€6 million. The comparative information for the reference year has been revised for these PPA adjustments. As the impact on the profit and loss account is negligible, no comparative information has been adjusted, see Note 3 Change in the scope of the consolidation to the 'Consolidated financial statements'.